Pauline Hanson's MP, Capital Gains Tax, Iran Maritime Fees, Ukraine Drone Strike on Moscow

Morning everyone. Our top story is on Pauline Hanson, who says she had to have a chat with her new MP for Farrer after he went off-message on immigration and the flying of the Aboriginal flag.

The Albanese government has promised new concessions to its capital gains tax changes, and we ask if it amounts to a major backflip.

Overseas, Iran has suggested it will introduce maritime fees for vessels in the strait of Hormuz, Ukraine has launched a big drone strike on Moscow, and Lionel Messi’s family asks for “humanity’ amid reports about father’s health.

Australia

‘Clear, accessible’ | Guardian Australia’s Matilda Boseley has taken out one of the top honours at the 2026 Walkley mid-year media prizes, winning the award for innovative storytelling.

Red flag | One Nation’s leader, Pauline Hanson, says she “had to have a conversation” with the new Farrer MP, David Farley, after he appeared to contradict her policies on immigration and flying Indigenous flags.

Tweak or transformation? | Although it has been reported in some outlets as a major “backflip”, Labor’s proposed changes to its planned capital gains tax reform is more of a tweak than a transformation, writes Dan Jervis Bardy.

Migration fall | Net overseas migration added 301,000 people to Australia’s population last year, the lowest increase since mid-2022 but still above the pre-pandemic level.

Land grab | Gina Rinehart says Australia should offer Elon Musk, the world’s first trillionaire, free islands to build and launch satellites in a bid to attract investment to northern Queensland.

World

The fees of Hormuz | Iran says it intends to introduce a system of maritime fees in the strait of Hormuz. In southern Lebanon, Israel and Hezbollah have continued to trade attacks as threats remain to the US-Iran peace deal. Our diplomatic editor writes that the deal makes it clear how far the US has been forced to retreat since last year.

Russian raid | Ukrainian drones have hit Moscow, at sites including a major oil refinery, in Kyiv’s biggest air raid on the city since Russia’s invasion.

Teacher jailed | A secondary school teacher from north-west England has been jailed for life for sexually abusing and murdering the baby boy he was adopting with his partner. Jamie Varley, 37, was described by one police officer as an “arrogant, self-centred liar”.

Cuba crisis | Cuba’s economy needs urgent changes to overcome a crisis intensified by a US oil blockade, the president, Miguel Díaz-Canel, has said in a speech to Communist party leaders.

Crocodile charge | A man has been arrested on suspicion of attempted murder after a three-year-old boy ended up in a crocodile enclosure, Cambridgeshire police said.

World Cup

Socceroos latest | Jack Snape picks out how judicious use of substitutes could help the Socceroos beat the USA tomorrow, while David Squires casts his sardonic eye over proceedings.

Match catch-up | South Africa grabbed a late equaliser against Czechia for a 1-1 draw, and Switzerland v Bosnia Herzegovina is under way. Now that all 48 teams have played at least once, here are the outstanding stats from those matches.

Off the pitch | Lionel Messi’s family has asked the media for “humanity” amid reports about his father’s health while his son competes at the World Cup. The Côte d’Ivoire striker Elye Wahi, who is being investigated for alleged fixing, has not been given a visa to travel to Canada for his team’s match against Germany.

What to watch today | Canada v Qatar kicks off at 8am and at 11am there is the Mexico-South Korea clash.

Full Story

Newsroom Edition: Pauline Hanson’s Trumpian attack on the press

Josephine Tovey speaks to Mike Ticher and political editor Tom Mcllroy about Pauline Hanson’s “ugly” vision for Australia.

In-depth

Media-shy financier Stephen Feinberg has quietly amassed extraordinary influence over US military spending as the deputy secretary of defence. Who is the billionaire inside Trump’s Pentagon?

Not the news

The Melbourne band Temper Trap are back from a long hiatus with a fourth album, Sungazer, released next month. Caitlin Welsh caught up and asks how their lives and the music industry has changed, underlined by the TikTok cover that gave the impetus to record and tour again.

Sport

Basketball | Thousands of Knicks fans have gathered in New York City to celebrate the team’s NBA championship in a ticker-tape parade.

Cricket | England are in a hole at the end of day two of the second Test against New Zealand at the Oval.

Golf | Bad weather has disrupted the first round of the US Open at Shinnecock Hills in New York. Follow it live.

Media roundup

Gold Coast residents are counting down the days to a police crackdown on ebikes, according to the Bulletin. Coogee shark attack victim Leah Stewart is still fighting for her life in hospital, the Daily Telegraph reports, with her condition complicated by infection. The Courier Mail says five caravan manufacturers have gone bust, leaving the industry in “meltdown”.

What’s happening today

Canberra | KPMG heads to appear before parliamentary committee.

Western Australia | 70th anniversary of nuclear tests conducted in the Montebello Islands off the coast of Western Australia in 1956.

Military | Victims’ families and defence officials speak at a public hearing into the helicopter crash in the Whitsundays in 2023 which killed four people.

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Brain teaser

And finally, here are the Guardian’s crosswords to keep you entertained throughout the day. Until tomorrow.